Indexing of the insurance part of the pension by years

The principle of accrual of insurance pension exactly repeats any program of accumulative insurance. The essence of the methodology is that a person pays contributions from his salary throughout his work activity and, as a result, gets an accumulated amount to go on a deserved rest. The insured event in this situation is disability.

Funds accumulated for the entire period of work, a person receives not only once and in full, but monthly, almost in equal shares. But given the current level of inflation, the amount can not remain at the same level all the time. This is what is needed Indexation of the insurance part of the pension. Its size will depend on the requirements. Therefore, you should think about your life after leaving for a well-deserved rest as soon as possible.

What is an insurance pension?

Before you decide what indexation of the insurance part of a pension is, you need to disassemble the meaning of the concept itself.

This type of payment means monetary compensation to citizens who have an insurance policy and for any reason are incapacitated. This can be explained by old age, the appropriation of a disabled group, the existence of disabled family members, and the loss of a bread-winner.

In this type of payments are included two components. This is directly an insurance pension, which is used to index the insurance part of the labor pension, and a fixed amount.

What kinds of insurance pensions exist?

Insurance pension is placed not only for citizens who are on a well-deserved rest, but also for other persons with the available reasons. The grounds for obtaining these accruals are:

• Achievement of retirement age;
• Group disability, confirmed by the conclusion of the medical commission;
• Loss of the breadwinner.

What are the conditions for obtaining an insurance pension by age

Not all elderly people have the right to receive payments for insurance pensions. For this, certain conditions must be met, including:

1. Age. To be able to receive a pension, a man must reach sixty years, and a woman - fifty-five.
2. Seniority. In the period from 2015 to 2024, this value increased from six years to fifteen - annually per unit.
3. The value of the personal pension coefficient. In the period from 2015 to 2025 this number will increase from 6.6 to 30 - annually by 2.4.

What is insurance experience

The size of the accrued payments directly affects the size of indexation of the insurance part of the pension. The amount that is put to a citizen who is on a well-deserved rest depends on several factors. One of these conditions is the length of service.

Insurance period is the total value of all working periods. This includes other activities. That is, those circumstances, due to which a person temporarily did not work hard. They are taken into account when calculating the amount of pension payments.

All the time during which the Pension Fund received contributions, is added to the seniority. As a rule, this happens in certain situations. These include:

• Service in the armed forces or law enforcement agencies (police, customs, prosecutors, courts);
• Temporary inability to work due to illness;
• Maternity leave, but leave to care for all children should not be more than six years;
• A temporary unemployed position due to moving or transferring his organization to another location;
• Participation in works under the public principle;
• Stay under arrest as a result of unlawful accusation or repression;
• Care for a disabled person with a first disability group, a disabled child and an elderly person over eighty years of age;
• The period of residence of military wives in places with the inability to find work (this time should not exceed five years);
• Period of residence of family members of workers of diplomatic organizations abroad (only the first five years are taken into account).

Add the listed time to work experience only if before or after such a period of work was conducted.

What is pension indexation?

Recently, the government controls the insurance part of the pension. Indexing is an increase in the amount of payments that is made annually. The increase in the level of indexation is affected by a decrease in the purchasing power of the most sensitive segment of the population.

Since there is an insurance part of the pension (the indexing of which is considered in our article) and the social, the method of their recalculation has differences. The level of increase in the amount of social benefits is influenced by the subsistence level for each region. And the indexation of the insurance part of the pension depends on the social charges, the inflation index and the profitability of the Pension Fund of the Russian Federation.

How to determine the indexes for the allocation

The coefficient of indexation of the insurance part of the pension is recalculated according to economic indicators, in particular, the rate of inflation. But the amount of additional payments will not exceed the capacity of the state budget. For this reason, annual recalculation is regulated by law. The process is affected not only by the financial situation in the state, but also by the social situation. To this adjustment, the government established additional allowances in accordance with special decrees and regulations.

Indexation of the insurance part of the pension by the years had a different value, and it is rather difficult to trace its dynamics, because different factors influenced the recalculation. Until 2013, the procedure for calculating the coefficient was one. Then the financial situation in the Russian Federation began to worsen, and the recalculation fully reflected the situation in the country. So, in 2016 citizens who are on a well-deserved rest, received pensions at the level of the previous year. Indexation was assigned on a one-off basis, and its ratio was four percent.

What is the dynamics of the charging of indexation

In the previous year, as already mentioned, only the insurance part of the pension was recounted once. This was due to a decrease in the burden on the state budget. Indexing this year provides for two increases. One is scheduled for the first days of February, the other will happen in April. This is the procedure prescribed by law.

The indexation of the insurance part of the pension each year had a different meaning:

• In 2010 - 6.3%;
• In 2011 - 8.8%
• In 2012 - 10.65%;
• In 2013 - 10.12%;
• In 2014 - 8.31%;
• In 2015 - 11.4%;
• In 2016 - 4%;
• In 2017 - 5.8%.

How will the recalculation take place in 2017?

To somehow compensate for the payments of 2016, the government decided to charge a fixed amount of five thousand rubles.

The adjustment factor for the current year depends on the size of the pension that was formed at the end of 2016. Since the inflation index was 5.8 percent, the estimated value will be 1.058.

In accordance with the index set for the current year, the average for Russia of the size of insurance pensions were:

• By age - 13 620 rubles;
• By the presence of a disability group - 8 457 rubles;
• On loss of the supporter - 8 596 rubles.

If you do not take into account fixed payments, then we can say that in this period, not an indexation of the insurance part, but rather its adjustment.

The first adjustment, conducted on February 1, takes into account the magnitude of consumer price growth over the past year. This recalculation is mandatory for execution. The second one largely depends on the profitability of the Pension Fund of Russia, and in accordance with it the government sets the ratio. But the indexation, carried out on the first of April, can not be carried out by the corresponding decree.